HONG KONG (Reuters) - Luxury brand Coach Inc said it had applied to delist from the Hong Kong stock exchange, dealing another blow to the financial hub, a day after commodities trader and miner Glencore said it planned to withdraw its listing from the city.
Coach, now known as Tapestry Inc, and Glencore launched secondary listings in Hong Kong in 2011 and their departure comes as the stock exchange is struggling to attract international companies.
Both companies cited weak demand for their shares as the reason to cease trading in Asia. Coach did not specify a timeline for its exit, while Glencore said its withdrawal was expected to become effective Jan. 31, 2018.
Their listings followed a record year for initial public offerings in Hong Kong in 2010 and into 2011, including international names such as skin care products retailer L’Occitane International and Italian fashion house Prada SpA.
Founded in a loft in Manhattan in 1941, Coach has grown into a multi-billion dollar company, building its business on the success of its Coach handbags that for many years were widely coveted by wealthy women shoppers around the world.
Last month, Coach risked Wall Street and social media ire by announcing a change of its corporate name to Tapestry Inc, as it evolves into a multi-brand upscale retailer.
Coach has lost some shine in recent years, hurt by the financial recession and increased online shopping.
The company is trying to regain its former glory by buying new brands, keeping a tight lid on discounting and pulling back from department stores.
Reporting By Anne Marie Roantree; Editing by Gopakumar Warrier